Centuria Capital Group · ASX:CNI
Centuria Capital — Centuria Agriculture Fund — Investor Presentation (May 2024)
42 slides from Centuria Capital's investor presentation, May 3, 2024
Slide 1: Centuria Agriculture Fund
MAY 2024 | UNLISTED Centuria Agriculture Fund Limited equity raise offer Note: This fund has been registered with ASIC. A Product Disclosure Statement (PDS) is dated 3 May 2024. This document is strictly for the use of financial advisers and must not be distributed to any retail client nor elsewhere
Slide 2: Important notice
Important notice Disclaimer The information contained in this document has been prepared for use in conjunction with a verbal presentation and should be read in that context. This document is strictly for the use of financial advisers and must not be distributed to any retail client nor elsewhere in
Slide 3: Agenda
AGENDA 1. Fund overview 2. Agriculture real estate sector 3. Tenants and properties 4. Cornerstone offer 5. Appendices SUNDROP FARMS, PORT AUGUSTA SOUTH AUSTRALIA
Slide 4: Fund overview
Fund overview Multi-asset agricultural fund with a focus on protected cropping Fund Asset 6.00 cpu p.a. Open-ended 100ha+ under Strong customer Year-round production Target FY25 distribution1,2,5 Limited quarterly glass relationships Glasshouses able to produce liquidity4 111ha of protected Tenants
Slide 5: Agriculture real estate sector
Agriculture real estate sector Section two P’PETUAL RIVERLEA PARK SA
Slide 6: Investment thesis
Investment thesis Attractive underlying thematic Demand for Australian grown fresh food and other quality agricultural products is forecast to High quality and reliability of Australian agricultural products has created demand in increase materially over the next 10 years, driven high valued global
Slide 7: Global consumption trends driving demand
Global consumption trends driving demand Population growth and the associated growth of the new middle class income will increase food consumption, diversify diets and consequently increase the demand for Australian food and fibre. Much of this growth will be in markets adjacent to, and with strong
Slide 8: Protected cropping benefits
Protected cropping Year-round production benefits Ability to produce all year round at a consistent quality and quantity to meet consumer needs as a result of control over the growing conditions within a glasshouse. The benefits of controlled growing Water risk Highly sustainable production methods
Slide 9: Protected cropping environmental benefits
Protected cropping environmental benefits Controlled growing techniques from using glasshouses provide significant ESG benefits over open field growing techniques. Key ESG benefits • All year-round production and increased yields - ability to produce all Field Glasshouse % year round at a consistent
Slide 10: Tenants and properties
Tenants and properties Section three SUNDROP GLASSHOUSE, PORT AUGUSTA SA
Slide 11: What does Centuria the landlord own?
What does Centuria the landlord own? Typically, the land, water, critical fixed infrastructure (above and below the ground) and access to services. They typically do not own the machinery or [seasonal/short-term] biological assets. Land All permanent 1 5 buildings Electrical 7 systems Permanent1 cro
Slide 12: What does the tenant own?
What does the tenant own? In a glasshouse any non-structural infrastructure, equipment and fixtures that were installed by the tenant and all crops, are typically owned by the tenant. Movable PP&E including 3 - growing trays - automated harvest vehicles - pack shed fit out - specialised tools Crop i
Slide 13: Current Portfolio
Current Portfolio Partnering with experienced growers to create a diversified, national portfolio GUYRA, NSW PORT AUGUSTA, SA RIVERLEA PARK, SA WARRAGUL, VIC Centuria 13
Slide 14: Sundrop asset overview
Sundrop asset overview Key characteristics • The property is located 13 kilometers south of Port Augusta and the opportunity is to invest in the land, Site area 362.80 ha existing glasshouse, solar energy system and substrate farming operations known as Sundrop Farms. • 362.8 hectare site that compr
Slide 15: Comfresh asset overview
Comfresh asset overview Key characteristic Site area 59.06 ha • The property is located at 234 Carmelo Road, Riverlea Park, SA, 38km north of the Adelaide CBD near the town of Virginia, in an area known as the food bowl of South Australia due to its extensive horticultural Title Freehold production.
Slide 16: Costa Guyra asset overview
Costa Guyra asset overview Site area 40.46 ha Key characteristics Title Freehold • The property is located at 160 Elm Street, Guyra, NSW, 40km north of Armidale at the top of the Northern Tablelands in the New England region. The opportunity is to invest in the land, existing glasshouse and Zoning F
Slide 17: Warragul asset overview
Warragul asset overview Key characteristics Site area 76.88 ha • The property is located at 264 Copelands Rd, Warragul VIC 3820 and the opportunity is to invest in the land and existing glasshouse and substrate farming operations known as Flavorite Warragul. Title Freehold • 76.88 ha site that compr
Slide 18: Cornerstone offer
Cornerstone offer Section four KATUNGA FRESH GLASSHOUSE, KATUNGA VIC
Slide 19: CAF strategic vision
CAF strategic vision Vision To create Australia’s leading agriculture real estate fund. A clear and Aims to provide investors with stable income returns and the potential for capital growth by investing in properties in simple strategy the agriculture sector underpinned by leases to a range of reput
Slide 20: New Asset: Katunga Fresh overview
New Asset: Katunga Fresh overview Key characteristics Sitearea Site area 40.46ha 40.46 ha • The property is located in Katunga, Victoria, 228km north of Melbourne in the Goulburn Valley region of northern Victoria. The opportunity is to invest in the land, existing glasshouse and substrate farming T
Slide 21: Capital raise of ~$56m to help finance acquisition
Capital raise of ~$56m to help finance the acquisition of a high-quality and accretive agricultural real estate asset Acquisitions Properties State Valuation Cap rate Hectares1 WALE (yrs)2 Occupancy 1. Katunga Fresh glasshouse VIC $90.0m 8.00% 21.0 20.0 100.0% • CAF settled the Katunga Fresh glassho
Slide 22: Acquisitions improve portfolio diversification, while supporting WALE and distributions
Acquisitions improve portfolio diversification, while supporting Geographic diversification – including the Katunga WALE and distributions Fresh glasshouse TAS 0% NSW SA 17% QLD 22% 0% PREVIOUS PORTFOLIO AFTER WA PORTFOLIO PORTFOLIO1 ACQUISITION2 0% Number of properties 4 5 Portfolio value $351.3m $
Slide 23: Pro forma financial information
Pro forma financial information1 SOURCES AND APPLICATION OF FUNDS2 DEBT SUMMARY2 Source of funds Amount ($) Total facility limit $236.2m Total cash subscribed by investors $251.2m Weighted average facility term 2.9 years Debt facility from financier $218.4m Weighted average margin 1.61% p.a. Total f
Slide 24: Prudent risk management
Prudent risk management Risk What is it? How is it managed? A fall in fund revenue as the result of a fall CAF has a robust leasing profile with 100%1 occupancy, 17.0yr1 WALE, and quality Income/tenancy risk in rental income. agricultural operators reducing the risk of a fall in rental income. While
Slide 25: Capital raise timetable
Capital raise timetable1 Total additional equity raise of $56 million2 How to access the Fund • Directly via PDS - minimum investment $10k ITEM DATE • Indirectly via the platforms; Fund reopens for applications 1 July 2024 - Netwealth - HUB24 - Powerwrap - Praemium - uXchange • Research ratings from
Slide 26: National Distribution Team to support investors and advisers
National Distribution Team to support investors and advisers Ben Harrop Aidan Whyte Anthony Hewett Head of Distribution Senior Relationship Manager Senior Relationship Manager M: 0431 133 058 M: 0424 305 879 M: 0408 404 253 T: (02) 8923 8923 T: (02) 9122 2143 T: (08) 9321 7133 E: ben.harrop@centuria
Slide 27: Office locations
AUSTRALIA Sydney (head office) Melbourne (02) 8923 8923 (03) 9616 6500 Level 41, Chifley Tower Level 47 2 Chifley Square 101 Collins Street Sydney NSW 2000 Melbourne VIC 3000 Brisbane Perth (07) 3905 7000 (08) 9321 7133 Level 2 Level 27 348 Edward Street 140 St Georges Terrace Brisbane QLD 4000 Pert
Slide 28: Appendices
Appendices Appendix A: Fees Appendix B: Tenants Appendix C: ESG Appendix D: Centuria overview KATUNGA FRESH GLASSHOUSE, KATUNGA VIC
Slide 29: Fund services and fee schedule
Fund services and fee Acquisition 2.0% (of gross asset purchase price) schedule Base management 0.60% p.a. (of GAV1) Performance 20% over 8% total return Custodian 0.015% p.a. (of GAV1) or $15,000 p.a. Disposal 1.0% (of gross asset disposal price)2 Leasing 6.5% (renewal); 20.0% (new lease)3 1. Gross
Slide 30: Tenant overview: Katunga Fresh
Tenant overview Katunga Fresh overview 1 • Katunga Fresh was established by Peter Van Den Goor in 2004, since which time, it has become one of Australia’s largest glasshouse operators with production located in Katunga VICC, grown under 21 hectares of high-tech Glass. • Katunga Fresh has access to a
Slide 31: Tenant overview: Sundrop
Tenant overview Sundrop overview1 Key customer • Sundrop Farms is a leading sustainable horticultural player in Australia producing high value tomatoes using renewable inputs. • Sundrop grows approximately 14% of Australia’s truss tomatoes. • The company has a 10 year take or pay agreement with Cole
Slide 32: Tenant overview: Comfresh
Tenant overview Comfresh overview 1 Key customers • Comfresh is one of Australia’s leading growers and suppliers of fresh fruit and vegetables to Australian supermarkets. • The company is headquartered in Edinburgh, South Australia where its packaging facilities and national distribution of fruit an
Slide 33: Tenant overview: Costa
Tenant overview Costa overview 1 Key customers • Costa is Australia’s largest grower, packer and marketer of fresh fruit and vegetables. • Costa Group has long standing relationships with blue chip major fresh produce retailers across Australia. Customers include Coles, Woolworths, Aldi, Costco and
Slide 34: Tenant overview: Flavorite
Tenant overview Flavorite overview1 Key customer • Flavorite grows, markets, distributes and supplies premium fresh produce both nationally and internationally. • Employs more than 530 staff during summer (c.380 in winter). • The company has sustainably been able to achieve strong levels of profitab
Slide 35: ESG opportunities
ESG opportunities Agricultural real estate offers disproportionately higher ESG advantagescompared to traditional asset classes such as shares or bonds. Controlled farming Carbon absorption Reduced waste Water efficiencies Ability to control how the farming Ability to influence carbon outcomes Advan
Slide 36: CAF's embedded ESG investment philosophy
CAF’s embedded ESG investment philosophy ESG credentials form part of the wider acquisition strategy of the Fund. Assets will be assessed using the following ESG characteristics, sustaining long term value and resilience of the growing portfolio. OUR ESG AREAS OF FOCUS HOW IT’S MEASURED WHAT IT MEAN
Slide 37: Strong domestic supply chain
Strong domestic supply chain The strength of the Australian agriculture supply chain mitigates macroeconomic risks to the global supply chain. Recent supply chain disruption has brought to focus the essential need to access locally produced agricultural products. AUSTRALIAN AGRICULTURE SUPPLY CHAIN
Slide 38: Australia's position
Australia’s position Investment in Australian agricultural real estate offers exposure to an asset class with strong underlying fundamentals Australia Land value Technology advancements Commodity outlooks • Strategically located for key export • Historical steady growth in Australian • Promotes effi
Slide 39: Investment rationale
Investment rationale Strong risk adjusted distribution Income underpinned by real Australian agriculture can be a rate of 6.00 cpu1,2 and an initial assets with 100%4 occupancy, natural inflation hedge driven by target total return of 8%p.a.3 17.0 yr WALE4 and triple net growing non-discretionary le
Slide 40: Centuria Capital Group: A leading Australasian real estate funds manager
Centuria Capital Group: A leading Australasian real estate funds manager CNI included in the S&P/ASX200 Index $21.1bn GROUP AUM1 $20.3bn REAL ESTATE AUM $6.2bn $14.1bn $0.8bn LISTED REAL ESTATE UNLISTED REAL ESTATE INVESTMENT BONDS $3.9bn $2.1bn $0.2bn $8.3bn $2.7bn $3.1bn $0.8bn CENTURIA CENTURIA A
Slide 41: Disclaimer
Disclaimer Confidential This presentation is not financial product or investment advice, a recommendation to This presentation is strictly confidential and is intended for the exclusive benefit of acquire securities or accounting, legal or tax advice and should not be relied on by the person to whic
Slide 42: Office locations
AUSTRALIA Sydney (head office) Melbourne (02) 8923 8923 (03) 9616 6500 Level 41, Chifley Tower Level 47 2 Chifley Square 101 Collins Street Sydney NSW 2000 Melbourne VIC 3000 Brisbane Perth (07) 3905 7000 (08) 9321 7133 Level 2 Level 27 348 Edward Street 140 St Georges Terrace Brisbane QLD 4000 Pert
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